Bank Credit Portfolio Management discussion - What they actually do, is it worth it, exit opps?
Interviewing for a Credit Portfolio Manager at a US bank and have a few questions.
What the role is about: CPM work across origination, finance, risk and treasury teams. The organisational structure varies depending on each bank. They do not analyse individual deals but rather the portfolio of deals, on an aggregate basis. They assist with loan pricing / valuation, and advise on capital requirements implications for the loans book. A significant part of their job is to optimize the balance sheet structure to maximise return on capital. Therefore they track various profitability measure for the loan book and are involved in risk transfer (getting loans off the balance sheet, for capital relief). This is achieved by selling assets or hedging, so it links up with structured finance (they manage CLOs) and risk transfer (CDS).
You can find more information on what they do here, here and here.
You can find job descriptions here and here.
My questions:
- Anybody on this forum work in such department and can tell us about their day to day, what they like about it and what they like less?
- Is this an opportunity worth pursuing with stimulating tasks and meaningful career development or does it sound more like admin / control to you?
- What are the exit opportunities with such role? I am assuming capital management / Treasury, securitization/CLOs management, anything else? Do you know of some who moved to origination from there?
Thanks a ton.
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